Lessons to learn from Solyndra debacle!

Am sure you all have heard about Solyndra, which has shut its manufacturing facility and will file for bankruptcy.

According to reports available, Solyndra’s case has been an overall failure of the business. However, I will put it as — too much, too soon! Also, this move should come as a warning to all solar/PV companies — established as well as start-ups.

Perhaps, Solyndra had a problem of escalating costs of manufacturing the PV modules. Maybe, it could not find a way to balance that cost against the actual selling cost.

According to IMS Research, the global PV module industry recently suffered from a huge oversupply. This led to fierce price competition and the average prices dropped by about 20 percent in a single quarter. Now, will such a scenario help Solyndra? Perhaps, not!

Closer home, in India, there are said to be a lot of solar/PV players. How many of these players, who have petitioned for a license, do you think will last the course? Another interesting pointer: how many of these players will actually survive the very first year? Or, even the second?

There is something called consolidation, which simply means — there are a lot of players in the market, but very few are going to last the course – isn’t it? If that’s the case, then why have so many players in the first place? The answer perhaps lies somewhere between how many players are actually relevant and how many players are actually competing for honours!

Deepak Gupta, secretary, MNRE, government of India, had mentioned during Solarcon India 2010 that there is a need to develop indigenous manufacturing capacity. Dr. Farooq Abdullah, Hon’ble Union Minister for New and Renewable Energy, had added that “India should develop its technology right here! Don’t import third rate technology!” Wonder, how much of these advices are being followed!

Well, if these advices aren’t being followed, then make no mistake: there will be some Solyndra-like cases in India too! I hope I am wrong!!